Westminster Energy, Environment & Transport Forum
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Westminster Energy, Environment & Transport Forum

Electricity Market Reform - the Capacity Market, Contracts for Difference and the Energy White Paper

When: Tuesday, 26 November 2019
Where: Central London
United Kingdom

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Taking place following the anticipated Energy White Paper which will aim to end the energy trilemma - the aim of delivering clean energy alongside energy security and affordable prices for consumers - discussion will focus on priorities for Electricity Market Reform (EMR) and the next steps for the energy sector.

Following the first phase of the Capacity Market (CM) Review, discussion will focus on the effectiveness of the CM and how its design could be improved - taking into account commitments from the technical amendments to include wind and solar energy generation in the Capacity Market - as well as the potential for further incorporating Demand Side Response and Pumped Storage Hydropower.

Delegates will also consider the priorities of ensuring that capacity is maintained at the minimal cost to consumers when altering components of the CM regime, with discussion taking place following the release of Ofgem’s medium-term objectives - highlighting steps for mobilising competition, innovation, and new generation, while also keeping costs low for consumers.   

Sessions will assess expected changes to regulatory controls - looking at simplifying the parts of the CM, such as the Prequalification phase - as Ofgem completes its Five Year Review of the Capacity Market Rules, which is due to be published later this year.

Discussion will consider the next steps for the CM as the European Court of Justice is expected to make its decision following the EU ruling that the CM breaches state aid rules - with attendees expected to assess whether planned auctions will take place, in light of Government confirming that auctions for delivery year 2020/2021 and 2023/2024 are expected to take place.

Attendees will look at the next steps for increasing the amount of renewable energy generated for the national network following the Contracts for Difference (CfD): Allocation Round 3 - which is expected to conclude in autumn 2019 - as well as assessing the success of the regime as a whole.

Delegates will also examine the opportunities for further investment into emerging technologies following the withdrawal of subsidies, like the feed-in-tariff, and the priorities for less established renewable technologies to learn from successful CfD bidders.

Further sessions will discuss the recently legislated target for reducing national emissions to net-zero by 2050, as well as the CCC report: Net Zero - The UK’s contribution to stopping global warming, with attendees expected to consider how the changing role of EMR might help achieve this target.



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